London based CFD broker CMC Markets (LON:CMCX) has announced that it is again extending its range of unique index products with the launch of signature share baskets. Designed in conjunction with industry experts, signature baskets are constructed by applying complex investment methodologies to highlight constituents which share common price behaviour, rather than just focusing on industry sector, geography or size.

The first set of these signature baskets are based on Relative Rotation Graphs, which identify those stocks which are exhibiting positive momentum when compared to their benchmark indices. By purposely avoiding stocks which are seen to be underperforming, back testing has shown that the strategy historically outperformed the wider market.

Ed Gotham, Head of Growth at CMC Markets, commented:

“We have developed these unique signature share baskets in conjunction with recognized market experts to allow our clients to follow a specific trading methodology. We know they are always keen to explore new opportunities and the early response to these baskets, designed to focus on strong relative momentum stocks from a range of equity indices, has already been encouraging.”

Designed in conjunction with Julius de Kempenaer and Trevor Neil, these market professionals collectively have more than 75 years of trading experience and spent the last 16 years developing the concept of Relative Rotation Graphs. This analysis is now available on a range of leading market data platforms including Bloomberg terminals and REFINITIV Eikon, and is also widely used by many investors.

Julius de Kempenaer of RRG Research added:

“Products like this are designed to offer another layer of flexibility and recognize the increasingly sophisticated needs of CMC’s clients. They understand that investment professionals have no shortage of portfolio methodologies at their disposal, so this addition means we are able to provide yet another genuine innovation for those using CMC’s trading platform.”

The RRG portfolio methodology looks to give traders exposure to those assets exhibiting strong relative momentum price movements versus their benchmark. For example, CMC’s UK 350 RRG Momentum+ basket captures positive momentum from a selection of the largest UK stocks, creating an equally weighted portfolio of the 10 most promising prospects, with the basket rebalanced quarterly.

Over the 12 months to March 4th 2021, the UK 350 RRG Momentum+ basket delivered a return of 88.92%, versus the UK100 which returned 6.79%. Past performance is not a reliable indicator of future results.

The seven RRG Momentum+ share baskets on offer are drawn from major benchmark equity indices in the USA, Australia, Germany, Hong Kong and the United Kingdom.

A range of 28 unique share baskets are now offered by CMC Markets, giving clients the opportunity to gain diversified exposure to an industry with a single trade.

Julius De Kempenaer cut his teeth in investment as a fund manager at AXA after four years in the Dutch Royal Military Academy, where he left as a captain. Before starting RRG Research he served in various buy- and sell-side roles, including stints on the trading floor and co-authoring analysis at RABObank International and Kempen & Co.

Trevor Neil has been a trader for over 30 years and currently runs a systematic technical fund, as well as training portfolio managers from some of the top investment firms in Europe. He started out as a commodity trader for Merrill Lynch, and before long became head of technical analysis at Bloomberg. On leaving there at the end of 2003, he formed BETA Group and operated a hedge fund based in South Africa.

CMC Markets plc was established in 1989 and is now one of the world’s leading online financial trading businesses. The company serves retail and institutional clients through regulated offices and branches in 13 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an online and mobile trading platform, enabling clients to trade thousands of financial instruments across forex, indices, cryptocurrencies, commodities, shares and treasuries through contracts for difference (“CFDs”), financial spread bets (in the UK and Ireland only) and, in Australia, access to stockbroking services.